Orthofix grew in the low single digits in 2Q19 as abnormally high price pressure on spinal hardware was offset by increased Trinity allograft volume.
- Company reiterated previous 2019 revenue guidance
- Jon Serbousek will succeed Bradley Mason as President and CEO on November 1, and will take the role of President of Global spine in the interim
- “Abnormally high” price pressure in the U.S. led to a 6.7% decrease in Spine Fixation revenue, though this was offset somewhat by a +33.5% increase in motion preservation products
- The M6-C cervical disk has been implanted by 17 surgeons and generated approximately $0.5MM in revenue to date, with a year-end goal of $3MM to $4MM in revenue
- Outperformance in biologics was driven by increased sales volume of Trinity allografts
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg |
| Spine | $23.2 | $23.9 | -$0.7 | -2.7% |
| Trauma | $25.8 | $24.8 | $1.0 | 4.0% |
| Orthobiologics | $16.7 | $14.7 | $2.1 | 14.2% |
| Other * | $50.1 | $48.2 | $1.9 | 3.9% |
| Total | $115.9 | $111.5 | $4.3 | 3.9% |
| 1H19 | 1H18 | $ Chg | % Chg |
| Spine | $46.1 | $44.6 | $1.5 | 3.5% |
| Trauma | $49.0 | $52.3 | -$3.3 | -6.4% |
| Orthobiologics | $32.5 | $29.0 | $3.5 | 12.0% |
| Other * | $97.4 | $94.4 | $3.0 | 3.2% |
| Total | $225.0 | $220.3 | $4.7 | 2.1% |
* Bone growth therapies
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg |
| US | $91.45 | $88.75 | $2.7 | 3.0% |
| Ex-US | $24.4 | $22.8 | $1.6 | 7.0% |
| Total | $115.9 | $111.5 | $4.3 | 3.9% |
Net Earnings Data
Net earnings, inclusive of all revenue, are as follows.
| Amt | % of Sales |
| Sales | $115.9 | |
| Cost of Sales | -$25.8 | 22.3% |
| General and Admin | -$21.9 | 18.9% |
| Selling and Marketing | -$56.9 | 49.1% |
| R & D | -$9.0 | 7.8% |
| Other | -$2.8 | 2.4% |
| Net Earnings | -$0.5 | -0.5% |
Source: Orthofix
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
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